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Four companies within the Lagan Construction Group are going into administration, with 200 jobs at risk.

Above: Chairman Michael Lagan

Lagan Construction Group Holdings Ltd, Lagan Construction Group Ltd, Lagan Building Contractors Ltd and Lagan Water Ltd are being placed in administration.

Twenty-six other companies within the group are not affected by this action.

Chairman Michael Lagan has said that parts of the group had been significantly impacted by a number of factors within the civil engineering and building divisions, including delays to projects starting up, protracted contractual disputes on some existing major projects and instability caused by a joint venture partner in Great Britain.

The specific joint venture partner referred to here was not named; Lagan’s joint venture partners on the UK mainland include Galliford Try, Sisk and Ferrovial.

Michael Lagan said: “It is with great sadness and reluctance that we have had to take this course of action. We have had long standing relationships with many of sub-contractors and suppliers. We hope that the process of administration will be smooth and that disruption to both projects and jobs will be minimal.”

Lagan Construction Group currently employs 800. It said that up to 200 employees may be affected by this development. Some of those jobs could be transferred to joint venture partners while others might be relocated to surviving parts of the group.

“The difficulties which have arisen within the Civils and Building divisions has meant that the directors of the affected four companies had no option but to immediately serve notice on the court to appoint an administrator,” Mr Lagan said.